The Wales superstar has endured a torrid last few years in La Liga, spending most of his time on the first-team periphery at the Santiago Bernabeu.
Bale’s future in Spain has been in constant doubt since the return of Zinedine Zidane in March 2019 despite having a contract with the La Liga champions until the summer of 2022.
The former Tottenham Hotspur star almost left the Spanish capital last summer after a fallout with Zidane, but a reported move to Chinese Super League club Jiangsu Suning could not materialize.
Bale was limited to only 20 matches in all competitions for Real Madrid during the 2019/2020 season, and McManaman, who once played for Real Madrid during his playing days, has urged the 31-year-old to return to England, where he established himself as a world class player.
“I think Gareth Bale could play in the Premier League and get back to his highest level. I certainly hope so," the Englishman said on 'Football Talks' with FIFA Legends.
"I know he's 31 years of age. Of course he's had a number of injuries but I don't think he's played a lot of football in recent years so he should be fit and strong.
"The most important thing for Gareth is to play football and if he's not going to do that at Real Madrid then I think he should try somewhere else."
Bale was the world’s most expensive signing when he joined Real Madrid from Tottenham Hotspur in 2013.
He has since scored 105 goals in 251 appearances for Madrid, winning four Champions Leagues and two La Liga titles.